Current · Source: Reserve Bank of India · RBI/2013-14/517 · issued 13 Mar 2014 · ~1 min read
Quick answerRBI directs Primary (Urban) Co-operative Banks to review FATF's February 2014 statement on AML/CFT compliance gaps in certain jurisdictions. Banks must consider this information but can continue legitimate trade with those countries.
The rule, in the simplest words
RBI tells Urban Co-operative Banks (UCBs) to check FATF's February 2014 list of countries with weak rules against money laundering and terror funding.
Banks must update their risk checks (how they decide if a customer or country is risky) using this new FATF information.
UCBs can still do normal business with those countries, but they may need to do extra checks (like asking more questions) for transactions there.
The bank's Principal Officer (the person in charge of following these rules) must tell the RBI regional office that they got this circular.
How it plays out — a real example
Ravi, a KYC & compliance officer in Indore, reads this RBI circular and checks FATF's updated list. He sees a new country flagged for weak anti-money laundering rules. Ravi updates his bank's risk checklist to add extra questions for customers sending money to that country, but he still approves a small loan for a local jeweler's legitimate trade there.
What changed
FATF updated its statement on AML/CFT compliance deficiencies in certain jurisdictions on February 14, 2014. RBI is now directing UCBs to factor this updated FATF guidance into their risk assessments.
What it means for you
UCBs must stay current with FATF's evolving list of high-risk jurisdictions to avoid regulatory penalties. While legitimate transactions are not banned, enhanced due diligence may be needed for dealings with flagged countries.
What you must do
Review the enclosed FATF statement and update your AML/CFT risk assessment accordingly.
Ensure your Principal Officer acknowledges receipt of this circular to the respective RBI Regional Office.
Continue to monitor FATF updates for any changes in jurisdiction risk profiles.
Who it affects
All AD Category I Primary (Urban) Co-operative Banks, Principal Officers of UCBs
❓ Common questions
Does this circular ban transactions with the listed jurisdictions?
No, it explicitly states that UCBs are not precluded from legitimate trade and business transactions with those countries and jurisdictions.
What is the source of the updated AML/CFT guidance?
The Financial Action Task Force (FATF) issued the updated statement and document 'Improving Global AML/CFT Compliance: On-Going Process' on February 14, 2014.
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/517
UBD.BPD (AD).Cir.No.8/14.01.062/2013-14
March 13, 2014
The Chief Executive Officer
All AD Category I Primary (Urban) Co-operative Banks
Madam/Dear Sir,
Anti-Money Laundering (AML)/Combating of Financing of Terrorism (CFT) – Standards – Primary (Urban) Co-operative Banks
Please refer to our circular UBD.BPD (AD).Cir.No.6/14.01.062/2013-14 dated December 6, 2013 on risks arising from the deficiencies in AML/CFT regime of certain jurisdictions.
2. Financial Action Task Force (FATF) has updated its Statement on the subject and document ‘Improving Global AML/CFT Compliance: On-Going Process’ has been issued on February 14, 2014 ( copy enclosed ). The statement / document can be accessed from the following URLs also:
http://www.fatf-gafi.org/media/fatf/documents/statements/Public-Statement-14-February-2014.pdf and
http://www.fatf-gafi.org/topics/high-riskandnon-cooperativejurisdictions/documents/fatf-compliance-feb-2014.html
3. Primary (Urban) Co-operative Banks (UCBs) are accordingly advised to consider the information contained in the enclosed statement. This, however, does not preclude UCBs from legitimate trade and business transactions with these countries and jurisdictions.
4. The Principal Officer should acknowledge receipt of this circular to our Regional Office concerned.
Yours faithfully,
(P.K. Arora)
General Manager
Encls: As above.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/517 · issued 13 Mar 2014. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (All AD Category I Primary (Urban) Co-operative Banks, Principal Officers of UCBs), your first concrete step on “FATF AML/CFT Update for Urban Co-operative Banks” is: “Review the enclosed FATF statement and update your AML/CFT risk assessment accordingly.” (RBI issued this 13 Mar 2014).
Circular: RBI/2013-14/517 -- FATF AML/CFT Update for Urban Co-operative Banks
Issued: 13 Mar 2014
Action required: Review the enclosed FATF statement and update your AML/CFT risk assessment accordingly.
Action required: Ensure your Principal Officer acknowledges receipt of this circular to the respective RBI Regional Office.
Action required: Continue to monitor FATF updates for any changes in jurisdiction risk profiles.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8769&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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